P U B L I C
PPI
P O L I C Y
I N S T I T U T E
THE FAIR CREDIT REPORTING ACT: ISSUES AND POLICY OPTIONS
I
S
S
U
E
B
R
I
E
F
Introduction
The Fair Credit Reporting Act (FCRA) is a
federal statute1 designed to promote accuracy and
fairness in credit reporting by regulating the
activities of Consumer Reporting Agencies
(CRAs),2 those who furnish information to
CRAs, and those who use consumer reports.3
A consumer report is defined by the FCRA as
any written, oral, or other communication by a
CRA bearing on a consumer’s creditworthiness,
credit standing, credit capacity, character, general
reputation, personal characteristics, or mode of
living.4
These consumer reports, often called credit
reports,* can be issued to any eligible subscriber
of a CRA for the purpose of establishing a
consumer’s eligibility for credit, insurance, rental
housing, and employment.5 However,
information contained in credit reports is
increasingly being used to determine more than
whether a consumer meets certain eligibility
qualifications. Credit report information is also
being used to determine the pricing of the credit
or insurance as well as how much credit will be
given and under what terms.
For example, Table 1 lists the pricing structure
used by one lender for automobile purchase loans
based on the consumer’s level of
creditworthiness as measured by his or her credit
report.
Table 1
Creditworthiness and Loan APR
CREDIT
RATING
Excellent
Good
Average
Fair
Poor
ANNUAL PERCENTAGE
RATE
4.50%
5.39%
6.29%
7.99%
13.95% to 20.95%
Source: E-Loan (www.eloan.com) new car purchase
rates (36-month loan). Retrieved December 6,
2002.
AARP Public Policy Institute
The FCRA seeks to prevent dissemination of
incorrect, deceptive, or obsolete information
about a consumer while also protecting the
privacy of consumers by preventing disclosure of
credit reports to unauthorized persons or entities.
In addition, the FCRA allows consumers to
access their files held by CRAs and to amend
inaccurate information contained in these files.
This Issue Brief provides background on the
credit reporting industry and describes the role of
the FCRA in regulating the consumer credit
reporting industry. It also discusses a variety of
issues associated with the FCRA and potential
policy options to address these issues.
Background
FCRA Legislative History
*A
credit report consists of four types of information.
First, the report lists identifying information, such as
name, last reported address, marital status, Social
Security number, date of birth, spouse’s name, number
of dependents, previous address, and employment
information. Second, the report lists the consumer’s
credit information, including credit account numbers,
creditor’s name, amount of last payment, credit limit,
and credit payment history of each account. Third, any
public record information, such as tax liens, court
judgments, and bankruptcies, is listed. Last, the report
notes inquiries and the names of any creditors that
have reviewed a copy of the consumer’s credit report.
FULFILLMENT NUMBER D17818
The FCRA took effect on April 25, 1971, and
was substantially amended on September 30,
1996. The 1996 amendments were primarily the
result of continuing concerns about inaccuracies
in credit reports and problems reported by
consumers seeking to correct such inaccuracies.6
The major changes to the FCRA included the
imposition of a 30-day deadline (with a
conditional 15-day extension) for CRAs to
reinvestigate information disputed by a
consumer,7 the inclusion of protections against
the reinsertion of information that had been
AARP PPI ISSUE BRIEF NUMBER 58
removed,8 and the establishment of standards of
accuracy for furnishers of information to the
CRAs.9
The Consumer Credit Reporting Industry
The consumer credit reporting industry is a $6
billion industry that provides information about
consumers to a wide variety of businesses.
Information on consumers is purchased by
lenders, credit sellers, insurance companies, and
landlords, and by employers seeking information
on prospective or current employees. Credit
information is widely used, and more than one
billion credit reports are sold each year in the
United States.10 One industry source notes that,
on average, a consumer’s credit is checked
anywhere from five to 10 times a month.11
The largest source of credit reports are the three
national CRAs12 that collectively maintain
approximately 570 million files on U.S.
consumers.13 Because the CRAs are competitors,
each collects its own data on an individual
consumer and maintains its own file on that
consumer. As a result, the contents of a
consumer’s file will likely vary among the three
bureaus.14
In addition to selling credit reports, CRAs sell
prescreened lists to providers of credit and
insurance products. Prescreening involves CRAs’
creating a list of consumers who meet criteria
specified by purchasers of the list. For example,
credit card companies use prescreened lists to
identify and solicit consumers who qualify for
“pre-approved” offers of their credit card
product. According to industry sources, 3.5
billion prescreened offers were made in 2000
based on prescreening lists created by CRAs.15
The FCRA allows consumers to opt out of such
offers.16
The credit reporting industry is the most
extensive user of consumer data in the private
sector. According to industry sources, the
average consumer report contains 11 accounts
(seven credit card accounts and four loan
accounts),17 each of which is updated regularly.
As a result of the large amounts of data involved,
the credit reporting industry relies heavily on
computer automation, and information is
FULFILLMENT NUMBER D17818
transferred, sorted, stored, and retrieved
electronically. The use of computer technology
enables CRAs to receive information from a
number of sources and to capture data on
consumers throughout the United States.18
To facilitate this automation, many creditors and
other furnishers of information to CRAs use a
standardized computer program to report data to
CRAs.19 Information provided to CRAs is usually
received monthly and downloaded into their
databases. New information often supersedes
earlier information provided by the same creditor
in the last download.20 CRAs are unlikely to
depart from the automated systems since such a
move would reduce the speed and efficiency of
the database and increase costs.21
FCRA Issues
The widespread use of credit reports for an
increasing variety of purposes, and the large
amount of information processed by CRAs,
raises a number of issues regarding the FCRA’s
effectiveness.
Accuracy
One of the major goals of the FCRA is to
promote accuracy in credit reporting by requiring
CRAs to use reasonable procedures.22 Despite
FCRA protections, available data indicate that
assuring the accuracy of the information in credit
reports continues to be an issue.
Incorrect information is often included in
consumer credit reports. According to a 1993
report based on Federal Trade Commission
(FTC) complaint data, the most common type of
consumer complaint received was related to
credit reports, with the majority of the complaints
having to do with accuracy.23 Despite the 1996
amendments, the FTC noted in 2002 that
complaints about credit reports are still one of the
most common consumer complaints the agency
receives, with the largest number of complaints
still relating to accuracy.24
A 2000 study examining consumer credit reports
found that over half of the credit reports
examined contained errors.25 A 1998 study found
AARP PPI ISSUE BRIEF NUMBER 58
PAGE 2 OF 8
that 70 percent of credit reports investigated
contained incorrect information.26 Of these
reports, 29 percent contained errors significant
enough to have serious adverse consequences for
the consumer’s credit, and 41 percent contained
personal identifying information that was either
incorrect or obsolete. In contrast, an unpublished
1992 study sponsored by industry sources found
that less than 1 percent of credit reports contained
errors significant enough to result in a consumer
being denied credit.27
Another accuracy issue is that information
creditors provide to CRAs may be incomplete
and positive information may be missing.28 The
FCRA does not require creditors to report
account payment information to any CRA.
Instead, creditors are free to report to none, one,
two, or all three of the national CRAs. Variations
in information contained in credit reports based
on which CRA the credit report was drawn from
can result in wide variances in the apparent
creditworthiness of a consumer.29
Additionally, some companies intentionally
withhold positive credit information to prevent
the loss of customers to competitors.30 This
practice is particularly common in the subprime
lending market, where consumers pay higher fees
for access to credit.31 As a result, the credit
reports of these consumers will not reflect
positive payment history, and the consumer will
be unable to access less costly products and
services. The Comptroller of the Currency
recently suggested that corrective legislation may
be necessary to require reporting of credit
information to CRAs to protect consumers from
such practices.32
Inaccuracies can also occur when a creditor sells
a delinquent account to a debt collector. Once the
original creditor sells the account to a debt
collector, the debt collector becomes the
furnisher of information on this account to the
CRAs. The main source of inaccuracy in this
case results from incorrect reporting of the date
of initial delinquency on the account. One
concern is that debt collectors may report the date
they purchased or received the account as the
date of initial delinquency, even though the
actual date of initial delinquency was likely much
earlier.33 Because the FCRA stipulates that most
FULFILLMENT NUMBER D17818
negative information remains on a consumer
credit report for seven years from the date of
initial delinquency,34 establishing this date is
important to consumers attempting to restore
their credit.
A further source of inaccurate information is the
mismerging of files that occurs when one
consumer’s credit information is mixed with
another consumer’s file. Mismerged file cases
occur when CRA computers do not match
consumer data to the correct consumer as
incoming data are sorted. This typically occurs
with consumers who have similar identifying
information such as a similar name or Social
Security number.
In one recent example, a consumer found that
negative information pertaining to another
consumer with the same first name and similar
Social Security number was repeatedly placed on
her credit report.35 Despite the consumers’ having
different dates of birth, different last names, and
different addresses, the computer matching
system routinely mismerged these files.36
Another potential source of inaccuracy occurs
when CRA subscribers request information on
one consumer from a CRA database, and obtain
data on another consumer instead. This problem
occurs because the accuracy of the information
received from a CRA is inversely related to the
specificity of the identifying information used to
search the database.37 As a result, subscribers
who use less identifying information are more
likely to receive credit information unrelated to
the consumer about whom they are seeking credit
information.
For example, a subscriber who uses only name
and address information will likely receive more
matches (and consequently less accurate
information) than a subscriber who uses
additional identifiers (such as Social Security
number and date of birth). While the CRAs
require very specific identifying information
from consumers requesting their own files, this
standard does not apply to paying subscribers.38
AARP PPI ISSUE BRIEF NUMBER 58
PAGE 3 OF 8
Consumer Cost
Consumers are typically required to pay a fee to
obtain a copy of their credit report.39 The FCRA
allows CRAs to charge consumers a fee of up to
$9 (plus applicable state tax) for a copy of their
credit report.40 Six states entitle consumers to free
credit reports annually, while other states cap the
cost of credit reports below the federally
mandated level (Table 2).
Table 2
Cost to Consumer for Credit Report
Disclosure
STATE
Colorado, Georgia,
Maryland,
Massachusetts, New
Jersey, Vermont
Maine, Minnesota
Connecticut
California
Montana
All Other States
FEE*
Free Annual Report
(2 per year in
Georgia)
$3.00
$5.00
$8.00
$8.50
$9.00
Source: Equifax (www.equifax.com) Retrieved January
16, 2003.
* Fees do not include applicable state taxes
AARP Public Policy Institute
Because most consumers have separate files at all
three national CRAs, consumers need to purchase
their credit report from all of them to ensure that
their credit reports are accurate. In addition, if
consumers want to see their credit score,* they
may be required to pay an additional fee for this
disclosure.41
For consumers seeking to monitor their credit
regularly, some of the CRAs offer creditmonitoring services that allow frequent access to
the consumer’s credit report and notification of
any significant changes to that credit report (for
example, a new account opened or negative
*
Credit scores are numbers calculated to measure the
risk of delinquency or default posed by a consumer
seeking credit. They are used by potential lenders to
provide an instant summary of information contained
in the consumer’s credit report and to rank consumers
to determine whether a consumer qualifies for a loan,
how much the consumer will be lent, and at what rate.
FULFILLMENT NUMBER D17818
information reported). However, these services
require access to a computer and may not be
affordable to all consumers.42
Identity Theft
An issue that has received a great deal of
discussion recently is the role of the FCRA in
preventing identity theft and assisting victims of
this crime. Older persons can be an appealing
target for such thefts because they typically have
significant available credit to draw on and can be
victimized by family members or caregivers who
have access to their personal information.43
Often, the identity theft results in an individual’s
personal information being used to open
fraudulent accounts based on the unknowing
victim’s credit report information.
Some consumer groups argue that CRAs make
identity theft easier by furnishing consumer
credit reports to subscribers based on identifying
information that is less comprehensive than that
demanded of consumers seeking their own
reports.44 Also, consumer groups suggest that
CRAs could help to reduce identity theft by
focusing on the appearance of non-matching
address information in a credit report, because
this non-matching address is a major indicator of
possible identity theft.45
Victims often report difficulty in preventing their
credit reports from continuing to be used to
obtain fraudulent accounts after the identity theft
has been discovered.46 To remedy this situation,
CRAs have developed a standardized security
alert notification system designed to notify any
subscribers requesting a consumer’s credit report
that fraudulent activity has been reported.47
Despite this, one study found that almost half of
identity theft victims (46%) reported the
reoccurrence of financial fraud after they had
notified CRAs of the identity theft and placed a
security alert notification on their credit report.48
Dispute Resolution
FTC complaint data show that consumers
experience difficulties in correcting information
they dispute.49 One concern is that reinvestigation
procedures used by CRAs are inadequate due to
quotas imposed on CRA staff charged with
AARP PPI ISSUE BRIEF NUMBER 58
PAGE 4 OF 8
investigating consumer complaints. For example,
one CRA requires its staff to complete nine
consumer complaint investigations per hour.50
Another issue is the reappearance of incorrect
information previously deleted from a
consumer’s credit report. This problem is of
particular concern for victims of identity theft
attempting to clear their credit reports of
fraudulent information.51 Often this is the result
of a creditor with uncorrected files sending new
computer data files that supercede changes made
previously to a consumer’s credit report by the
CRA.52
In addition, victims of identity theft have
reported difficulty in removing fraudulent items
from their credit reports after the identity theft
has been discovered. Identity theft victims report
that this process is time-consuming; it can take
years to completely remove the incorrect
information from the consumer’s credit report.53
Preemption of state laws was intended to be a
temporary measure.59 Under the FCRA, any state
law enacted after January 1, 2004, that
supplements the FCRA* and affords greater
protections to consumers will not be preempted.60
The financial services industry is particularly
concerned about removal of the FCRA federal
preemption barring all states except Vermont
from placing requirements on businesses that
share customer information with their corporate
affiliates.61 At the same time, consumer
advocates are seeking to increase consumers’
ability to keep their financial information private.
Currently, sharing data about a customer’s
account among affiliates is permitted without the
consumer having an opportunity to opt out.
Should the state preemptions expire on January 1,
2004, as required under the FCRA, states would
be allowed to enact legislation governing the
sharing of such information.
FCRA Statute of Limitations
FCRA State Preemption
A key FCRA issue involves the preemption of
some aspects of existing state credit reporting
laws.54 Most states have laws relating to credit
reporting, and generally the FCRA does not
preempt state laws that provide greater consumer
protections. However, the FCRA does preempt
states from enacting more extensive protections
with regard to the use of credit reports to
prescreen consumers, the duties of persons who
take adverse action against a consumer based on
information contained in a credit report, and how
companies share customer information with their
corporate affiliates.55
Certain state credit reporting laws are exempted
from these preemptions, provided they were in
effect before September 30, 1996.56 This
exemption includes laws relating to the time by
which a CRA must take action during a consumer
dispute, information contained in credit reports,
and responsibilities of furnishers of information
to CRAs.57 In addition, Vermont state law
regarding information-sharing among affiliates is
exempted.58
FULFILLMENT NUMBER D17818
An issue that has received much recent attention
involves the two-year statute of limitations
provided by the FCRA.62 This is the result of a
2001 Supreme Court decision involving an
identity theft victim’s suit against a CRA for
failing to take reasonable steps to ensure the
CRA was issuing a credit report for the right
person. The court ruled that the two-year statute
of limitations begins at the time the liability
occurs rather than from the time of discovery by
a consumer.63
The court’s ruling is a major concern for identity
theft victims since, according to one study, it
took an average of 14 months for victims to learn
of the theft and subsequent damage to their credit
reports.64 As a result, consumers who do not
learn of problems in their credit reports quickly
may have no legal recourse against a CRA.
*
While only the preemption provisions are scheduled
to expire, some reports have stated incorrectly that the
entire FCRA will expire January 1, 2004.
AARP PPI ISSUE BRIEF NUMBER 58
PAGE 5 OF 8
Policy Options
A number of policy options have been proposed
to address the FCRA issues discussed above,
including:
ƒ Provide stronger enforcement of rules
requiring the date of initial delinquency to be
reported correctly by debt collectors. The
FCRA requires furnishers to verify the
accuracy of the date reported when challenged
by a consumer.65 This proposal is intended to
prevent the reporting of negative information
beyond the time limits provided by the FCRA.
ƒ Require subscribers who purchase credit
reports from CRAs to provide the same
standard of identification to retrieve a
consumer’s credit report as is required of
consumers seeking their own credit report.
Because CRAs have procedures in place for
consumer access, these same procedures can
be applied to subscribers requesting credit
reports.
ƒ Require CRAs to provide consumers with at
least one annual free credit report a year to
make it easier and less expensive for
consumers to monitor their credit reports. Six
states provide for consumers to receive free
credit reports (see Table 2), and federal
legislation has been proposed to allow
consumers in all states to receive at least one
free annual credit report.66
ƒ Allow consumers to place a security freeze on
their credit report. Consumers would be issued
a password to prevent their credit report from
being accessed without their express
authorization. California recently enacted such
a provision.67 This procedure slows down the
process for retrieving a consumer’s credit
report because the consumer must first contact
the CRAs and give permission for the release
of his or her credit report to the specified
individual or business, thereby providing an
extra check to prevent fraud.
ƒ Require CRAs to permanently block fraudulent
accounts on the credit reports of identity theft
victims. Such blocking is required under
FULFILLMENT NUMBER D17818
California law68 and has been proposed under
federal legislation.69 This requires CRAs to
correctly identify that the account is fraudulent
despite the fact that the account may have been
sold to a debt collector and been reported as a
separate account.
ƒ Require the FTC to monitor how effectively
consumer disputes with CRAs are resolved.
The FTC has suggested creating a complaint
referral system so consumers contacting the
FTC with a complaint against a CRA could
have the FTC forward the complaint to the
CRA for resolution.70 This referral system
would allow the FTC to analyze patterns of
complaints and monitor potential problems in
the processes and procedures used by CRAs to
resolve disputes.71
ƒ Allow the state preemptions to expire as
originally intended under the FCRA unless
federal legislation providing greater consumer
protections can be enacted. The sunset of state
preemptions would create an incentive to
address current gaps in federal privacy
protections, particularly with regard to datasharing among affiliated companies, while
providing a uniform standard that would limit
the compliance costs of CRAs and other
businesses.72
ƒ Change the statute of limitations to allow
consumers more time to discover potential
problems in their credit reports. Federal
legislation has been proposed to extend the
statute of limitations.73 Changing it to two
years from the time the violation is discovered,
or should have been discovered by the exercise
of due diligence by the consumer, would give
consumers a longer time frame to act.
Summary
The FCRA provides consumers with important
safeguards concerning the accuracy and privacy
of information contained in credit reports.
However, the widespread and increasingly varied
use of credit report data, and the dangers posed to
both consumers and businesses from the
emergence and spread of identity crimes, argues
strongly for updating and strengthening the Act.
AARP PPI ISSUE BRIEF NUMBER 58
PAGE 6 OF 8
Further, recent experience indicates that the
effectiveness of the FCRA can be improved by
including provisions to increase the accuracy of
consumer reports, improve the dispute resolution
process, prevent identity theft, and assist the
victims of such crimes in restoring their credit
reports.
Endnotes
1
15 U.S.C. § 1681 et seq.
CRAs are more commonly referred to as credit
bureaus.
3
The FCRA also regulates governmental uses such as
child support enforcement and counterintelligence.
4
15 U.S.C. § 1681a(d).
5
15 U.S.C. § 1681b.
6
For a detailed discussion, see National Consumer
Law Center (NCLC). Fair Credit Reporting Act (4th
ed., 1998).
7
15 U.S.C. § 1681i.
8
Id.
9
15 U.S.C. § 1681s-2.
10
Data provided by the Consumer Data Industry
Association (CDIA). http://www.cdiaonline.org
11
H. Fischer. “Free Credit Reports Sought by
Senator.” Arizona Business Gazette 122 (3) (January
2002).
12
The three national CRAs are Experian, Equifax, and
TransUnion.
13
Data provided by the Consumer Data Industry
Association (CDIA). http://www.cdiaonline.org
14
See, for example, Consumer Federation of America
and National Credit Reporting Association. “Credit
Score Accuracy and Implications for Consumers”
December 17, 2002. http://www.consumerfed.org
15
Data provided by the Consumer Data Industry
Association (CDIA). http://www.cdiaonline.org
16
15 U.S.C. § 1681b(e). Until recently, CRAs have
been able to sell credit header data to marketers,
information brokers, and others without the
consumer’s permission. Credit header information
typically consists of a person’s name, address, birth
date, and Social Security number. However, the
Federal Trade Commission (FTC) issued rules in 2000
pursuant to the Gramm-Leach Bliley Act that
prohibited this practice unless consumers had first
been given an opportunity to opt out. The rules were
recently upheld by a federal appeals court (TU v. FTC:
CA-D.C.– No. 01-5202; July 16). See E. Sanders.
“Curb on Sale of Consumer Data Upheld.” Los
Angeles Times (May 8, 2001).
17
Data provided by the Consumer Data Industry
Association (CDIA). http://www.cdiaonline.org
2
FULFILLMENT NUMBER D17818
18
M. Furletti. “An Overview and History of Credit
Reporting.” Federal Reserve Bank of Philadelphia
Discussion Paper, June 2002.
http://www.phil.frb.org/pcc/discussion/historycr.pdf
19
For a more detailed discussion of the automated
reporting format, see National Consumer Law Center
(NCLC). Fair Credit Reporting Act (4th ed., 2001
supplement).
20
National Consumer Law Center (NCLC). Fair
Credit Reporting Act (4th ed., 2001 supplement).
21
G. May. “Stop Thief!” Journal of Texas Consumer
Law 5 (3) (Spring 2002): 72-80.
22
15 U.S.C. § 1681.
23
U.S. Public Interest Research Group (U.S. PIRG).
“Credit Bureaus: Public Enemy # 1 at the FTC”
(October 1993). http://www.uspirg.org
24
Remarks of J. Howard Beales (Director, Bureau of
Consumer Protection, FTC) before the Consumer Data
Industry Association (January 17, 2002).
http://www.ftc.gov/speeches/other/bealescdia.htm
25
Consumer Reports Online. “Credit Reports: How
Do Potential Lenders See You?” July 2000. The study
evaluated 63 credit reports. www.consumerreports.org
26
U.S. Public Interest Research Group (U.S. PIRG).
“Mistakes Do Happen: Credit Report Errors Mean
Consumers Lose” (1998). The study evaluated 133
credit reports. http://www.uspirg.org
27
Data provided by the Consumer Data Industry
Association (CDIA). http://www.cdiaonline.org
28
U.S. Public Interest Research Group (U.S. PIRG).
“Mistakes Do Happen: Credit Report Errors Mean
Consumers Lose,” 1998. http://www.uspirg.org
29
Consumer Federation of America and National
Credit Reporting Association. “Credit Score Accuracy
and Implications for Consumers” December 17, 2002.
http://www.consumerfed.org
30
L. Fickenscher. “Lenders Hiding Credit Data, and
Regulators Object.” American Banker 164 (128) (July
1999).
31
Id.
32
Office of the Comptroller of the Currency (Press
Release NR 99-51), June 7, 1999.
33
National Consumer Law Center (NCLC). Fair
Credit Reporting Act (4th ed., 2001 supplement).
34
15 U.S.C. § 1681c. Chapter 7, 11, or 12
bankruptcies can remain on credit reports for 10 years,
and unpaid federal tax liens can remain for 15 years.
35
Hunsberger, B. “Victory Against Credit Agency a
‘Wake-Up Call.’” OregonLive.com (August 1, 2002).
http://oregonlive.com
36
Id.
37
National Consumer Law Center (NCLC). Fair
Credit Reporting Act (4th ed., 2001 supplement).
38
Id.
39
Under certain circumstances, including being denied
credit, employment, insurance, or rent based on
AARP PPI ISSUE BRIEF NUMBER 58
PAGE 7 OF 8
information contained within their credit report,
consumers are entitled to a free copy of the credit
report used by the subscriber within 60 days of the
consumer having been turned down. In addition, a
consumer may receive free disclosure if the consumer
certifies that he or she is unemployed and intending to
apply for employment, on welfare assistance, or has
reason to believe that his or her file may contain
inaccurate information due to fraud.
40
15 U.S.C. § 1681j. This fee may be updated
annually to reflect changes in the Consumer Price
Index.
41
N. Walters and S. Hermanson. “Credit Scores and
Mortgage Lending.” AARP Public Policy Institute. IB
52, August 2001. http://www.aarp.org/ppi
42
For example, Equifax offers “Credit Watch” for
$69.95 per year, and Experian offers “Credit
Manager” for $79.95 per year.
43
Testimony of Mary J. Frank, Esq., before the
Special Committee on Aging, United States Senate,
July 18, 2002. http://aging.senate.gov/events/
44
W. P. Ogburn and R. J. Rubin Letter to the FTC
regarding Revision of FCRA Commentary, April 24,
2002.
45
Id.
46
See, for example, testimony of John T. Stevens, Jr.,
before the Special Committee on Aging, United States
Senate, July 18, 2002. http://aging.senate.gov/events/
47
Testimony of Stuart K. Pratt before the Special
Committee on Aging, United States Senate, July 18,
2002. http://aging.senate.gov/events/
48
CALPIRG and Privacy Rights Clearinghouse.
Nowhere to Turn: Victims Speak Out on Identity
Theft,” May 2000. http://www.calpirg.org
49
Remarks of J. Howard Beales (Director, Bureau of
Consumer Protection, FTC) before The Consumer
Data Industry Association, January 17, 2002.
http://www.ftc.gov/speeches/other/bealescdia.htm
50
B. Hunsberger. “Victory Against Credit Agency a
‘Wake-Up Call.’” OregonLive.com (August 1, 2002).
http://oregonlive.com
51
Remarks of J. Howard Beales (Director, Bureau of
Consumer Protection, FTC) before The Consumer
Data Industry Association, January 17, 2002.
http://www.ftc.gov/speeches/other/bealescdia.htm
52
National Consumer Law Center (NCLC). Fair
Credit Reporting Act (4th ed., 2001 supplement).
53
Testimony of John T. Stevens, Jr., before the
Special Committee on Aging, United States Senate
July 18, 2002. http://aging.senate.gov/events/
54
15 U.S.C. § 1681t.
55
15 U.S.C. § 1681t
56
15 U.S.C. § 1681t. These exemptions only apply
to the laws as they were in effect on September 30,
1996.
FULFILLMENT NUMBER D17818
57
15 U.S.C. § 1681t(b). For example, Chapter 93 of
the Massachusetts Annotated Laws and Section
1785.25(a) of the California Civil Code are
specifically exempted from the state preemption.
58
Subsection (a) and (c)(1) of Section 2480e of Title
9, Vermont Statues Annotated is exempted.
59
This limited preemption period was designed to
provide adequate time to demonstrate whether the
federal standards were sufficient. See the statement
of Senator Bryan, 140 Congressional Record S4973,
May 2, 1994.
60
15 U.S.C. § 1681t(d).
61
M. Heller. “Sunset Provisions May Spur ’03
Privacy Fight.” American Banker (October 23,
2002). http://www.americanbanker.com
62
15 U.S.C. § 1681p.
63
TRW v. Andrews, 534 U.S. 19 (2001).
64
CALPIRG and Privacy Rights Clearinghouse.
Nowhere to Turn: Victims Speak Out on Identity
Theft,” May 2000. http://www.calpirg.org
65
15 U.S.C. § 1681s-2.
66
H.R. 2031 and H.R. 3053 were introduced in the
107TH Congress
67
Section 1785.11.2 of the California Civil Code.
68
Section 1785.16 of the California Civil Code.
69
S. 1742 and H.R. 5424 were introduced in the
107th Congress.
70
Remarks of J. Howard Beales (Director, Bureau
of Consumer Protection, FTC) before The
Consumer Data Industry Association, January 17,
2002.
71
Id.
72
Heller, M. “Sunset Provisions May Spur ’03
Privacy Fight.” American Banker (October 23,
2002). http://www.americanbanker.com
73
S. 1723, S 1742, H.R. 3368, H.R. 3369, and H.R.
3387 were introduced in the 107th Congress.
Written by Neal Walters
AARP Public Policy Institute, January 2003
601 E Street NW, Washington, DC 20049
 2003 AARP
Reprinting with permission only.
http://www.aarp.org/ppi
AARP PPI ISSUE BRIEF NUMBER 58
PAGE 8 OF 8